According to @sentimenttrader, the ongoing conflict between Donald Trump and Federal Reserve Chair Jerome Powell is escalating, with Trump increasing public pressure for immediate interest rate cuts and even threatening Powell's position. While direct removal of Powell is highly unlikely due to institutional protections and potential damage to Fed credibility (source: @sentimenttrader), this political tension is creating market uncertainty. For cryptocurrency traders, heightened volatility in USD rates can lead to increased price swings in major digital assets like BTC and ETH, as investors often seek alternative stores of value during periods of monetary policy instability (source: Bloomberg). Crypto market participants should closely monitor Fed policy signals and political developments, as any shift in rate expectations could act as a catalyst for significant crypto price movement.

According to The Kobeissi Letter, global central banks implemented 15 interest rate cuts in May 2025, marking the fastest monthly pace this year and one of the largest rate-cutting waves in the 21st century (source: Twitter @KobeissiLetter, June 17, 2025). This aggressive monetary easing historically correlates with increased liquidity in financial markets, often leading to higher risk appetite among investors. For cryptocurrency traders, such macroeconomic shifts typically result in upward momentum for leading digital assets like BTC and ETH, as lower rates make alternative investments more attractive. Traders should monitor central bank policy actions closely, as continued rate cuts could further fuel bullish sentiment and volatility in the crypto market.

According to Crypto Rover, if the Federal Reserve implements interest rate cuts and launches quantitative easing (QE), Bitcoin is expected to experience significant price surges, while daily gains of 20–25% for altcoins may become common again. This forecast highlights the strong positive correlation between loose monetary policy and crypto market rallies, suggesting traders should monitor upcoming Fed decisions for potential high-volatility trading opportunities (source: Crypto Rover on Twitter, June 4, 2025).

According to The Kobeissi Letter, April 2025 PPI inflation decreased to 2.4%, undercutting expectations of 2.5%, while core PPI fell to 3.1%, matching forecasts. However, March PPI figures were revised upward from 3.3% to 4.0%, and core PPI from 3.1% to 3.4%. These mixed inflation signals may increase short-term market volatility and uncertainty, directly influencing crypto traders' risk sentiment as monetary policy outlooks remain unclear. Source: The Kobeissi Letter (May 15, 2025).

According to Material Indicators (@MI_Algos), Bitcoin price action has conformed to expected liquidity-driven patterns this week, with traders closely monitoring order book depth and liquidity clusters ahead of Federal Reserve Chair Powell’s FOMC news conference. The source highlights that BTC liquidity is currently positioned around key resistance and support levels, indicating potential for sharp volatility during and after Powell’s remarks (source: @MI_Algos on X, May 7, 2025). Traders are advised to track real-time shifts in liquidity, as Powell’s statements on monetary policy could trigger significant moves in Bitcoin and broader crypto markets.

According to Skew Δ (@52kskew), market pricing for a 25bps rate cut at the June 18th, 2025 FOMC meeting has increased from 57% to 63%, reflecting evolving expectations based on recent economic data. This shift indicates growing trader anticipation of easing monetary policy as concerns about economic weakness mount, even as the Fed remains attentive to inflationary pressures (source: @52kskew, Twitter, April 30, 2025). For crypto traders, this heightened rate cut probability may boost Bitcoin and altcoin price volatility in the short term, as lower rates typically drive risk-on sentiment and inflows into digital assets.

According to Crypto Rover, the possibility of Trump dismissing Federal Reserve Chairman Jerome Powell could have significant implications for the cryptocurrency markets. Analysts suggest that such a move might increase market volatility, as investors react to potential shifts in monetary policy. This uncertainty could lead to fluctuations in Bitcoin and Ethereum prices, as traders assess the impact on inflation and interest rates.